Definition
The percentage of recurring revenue lost specifically to full cancellations, excluding downgrades.
Formula
MRR from churned accounts / MRR at start of period x 100
How to measure
Sum the MRR held by accounts that fully cancelled during the period and divide by the total MRR at the start of that period.
Why track it
Dollar churn shows the direct revenue impact of losing customers entirely, which can differ sharply from the logo churn count if large accounts are affected.
Example
A company loses just 3 accounts worth $18,000 combined MRR out of a $300,000 starting base, a 6% dollar churn rate.
FAQ
- What is Dollar Churn Rate?
- The percentage of recurring revenue lost specifically to full cancellations, excluding downgrades.
- How do you calculate Dollar Churn Rate?
- MRR from churned accounts / MRR at start of period x 100
- Why track Dollar Churn Rate?
- Dollar churn shows the direct revenue impact of losing customers entirely, which can differ sharply from the logo churn count if large accounts are affected.